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A production version of the Subaru XV Concept will be built in Malaysia from October 2012.

Fuji Heavy Industries (the manufacturer of Subaru vehicles) signed a Memorandum of Understanding with Tan Chong Group to build the compact SUV in Malaysia.

The announcement is the first official confirmation that the Subaru XV Concept will become a production reality.

The new model will be built at an existing Tan Chong Motor Assemblies plant, with production initially capped at 5000 units per year. According to Asia One, those vehicles will be sold in Malaysia, Indonesia and Thailand.

The Subaru Impreza-based crossover hatch will be built in Japan in larger numbers, although timing details are still to be confirmed.

The XV Concept was on display at the 2011 Australian International Motor Show in Melbourne earlier this month. It is powered by Subaru’s new 2.0-litre four-cylinder Boxer engine and teamed with a continuously variable transmission.

The concept is 36mm longer and 157mm higher than the all-new Subaru Impreza hatch, which joined it on the stand at Melbourne.

Subaru Australia is yet to confirm a local launch for the XV production car, although the brand’s managing director, Nick Senior, said in Melbourne he believed the car had “huge potential” and could offer similar success to the Outback and Forester models.

Exactly, I don't understand why Subaru would not offer a Sport / 2.5RS model with the FB25 it just makes way too much sense to me.

They could do that easily but they would also have to limit the production numbers of a 2.5RS because the thing they have to work hardest on in the next couple of years is their CAFE number. Sell too many gas sucking turbos and H6 cars and you have to balance that with more FB20 sippers. The FB25 sits in that middle ground as the base Forester and Outback engine and until it gets DI it will be at best in the low 30's for MPG. That's South of the 35-36 they need to get to.